Open Banking releases payments API spec to prepare industry for transformation

Open Banking, the implementation entity set up by the Competition & Markets Authority (CMA) to provide new ways for customers to share their financial data with non-bank providers, has released an API specification for accounts and transaction information and payments initiation.

The spec is now available on the Open Banking website for review and development by banks and third-party service providers.

Currently due to go live in January next year, the Payments Initiation API will enable third parties to set up secure payments on behalf of customers and, once authorised by the customer, submit the payment for processing.

Imran Gulamhuseinwala, Trustee of the Open Banking Implementation Entity, said:

“The specifications we are releasing today, which will be live from January next year, provide the platform for developers from banks, fintechs, and other organisations to build new web and mobile applications that will deliver a safer, more personalised and easier banking experience for consumers wishing to search, select and switch financial products in a secure environment.”

Back in March, Open Banking issued branch, ATM and product data APIs from the nine biggest business and personal current account providers that are backing the Open Banking project in the UK.

“We are on track with our plans to develop a world leading open banking service where consumers will be able to significantly benefit from moving, managing, and making more of their money,” says Gulamhuseinwala.

The current specification caters for the submission of a single, immediate, domestic payment from UK personal and business current accounts and is payment scheme agnostic, meaning that processing can take place via any payment system operator.

You can find the API specifications here.

Do you think Open Banking will improve the finance industry? Let us know in the comments.

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